There is one requirement in this section. The response to the requirement should be submitted in no more than 4,000 words. Penalties apply for exceeding the word count. No formal penalties apply for using fewer than 4,000 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to the requirement in less than 4,000 words.
Since the 2007 global financial crisis banking, regulation has focused on the control of systemic risk through capital controls. Some analysts believe that these controls have restricted the returns banks make on their lending. In addition, a strong argument can be made that the global recession was extended by a number of years due to banks not being able to lend to firms who were in need of investment (e.g. replacement of machinery/ equipment) as they were considered to be `risky` after the implementation of capital regulations.
Critically evaluate the case for and against capital requirements for the banking sector / industry. Your conclusions should be based on the evidence you have reviewed and you may draw upon relevant theories and ideas and where appropriate use analysis, arguments and justification by using examples and illustrations.